| dc.description.abstract | The purpose of the study is to trace theeffect of risk-based audit on financial performance
of DTMFIs in Kenya. Correlation research design was adopted in the investigation in
which quantity data was collected and analysed in order to describe the specific
phenomenon in its current trends, current events and linkages between different factors at
the current time. The population of 6 deposit taking Microfinance is small therefore the
study carried out a census survey of all the Microfinance Deposit Taking Institutions in
Kenya.
Primary data was collected through a questionnaire which was quantitative in nature.A
total of 36 credit officers, branch managers and operation manager auditors at the six
Deposit taking microfinance Institutions in Kenya were asked to respond to a
questionnaire. Inferential statistic regression and correlation was used to establish the
effect of risk based audit on financial performance of DTMFIs.
The findings show that there is a positive effect ofRisk Based Audit on financial
performance of Deposit Taking Microfinance Institutions in Kenya. The study concluded
that risk based audit practices adoption enables detection of risks on time and concentrate
on high risk areas, hence enhancing financial performance.The study recommends that
management in deposit taking microfinance institutions in Kenyashould adopt effective
risk based audit practices such as risk assessment, risk management, annual risk based
planning, internal auditing standards and internal auditing staffing to enhance financial
performance. | en |
